Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas As Engrossed: H4/2/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 HOUSE BILL 1918
4
5 By: Representative McAlindon
6 By: Senators J. Dotson, C. Penzo, M. McKee
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8 For An Act To Be Entitled
9 AN ACT TO AMEND THE LAW CONCERNING SPECIE OR LEGAL
10 TENDER; TO AUTHORIZE THE USE OF A BULLION DEPOSITORY;
11 TO ALLOW FOR A PRECIOUS METALS-BACKED ELECTRONIC
12 SYSTEM; AND FOR OTHER PURPOSES.
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15 Subtitle
16 TO AMEND THE LAW CONCERNING SPECIE OR
17 LEGAL TENDER; TO AUTHORIZE THE USE OF A
18 BULLION DEPOSITORY; AND TO ALLOW FOR A
19 PRECIOUS METALS-BACKED ELECTRONIC
20 SYSTEM.
21
22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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24 SECTION 1. Arkansas Code � 4-56-106 is amended to read as follows:
25 4-56-106. Specie or legal tender -- Definitions.
26 (a) As used in this section:
27 (1) "Bullion" means refined precious gold or silver metal
28 bullion or any shape or form as adopted by rule of the Chief Fiscal Officer
29 of the State that is valued primarily based on its metal content and not on
30 its form or function;
31 (2) "Bullion depository" means an entity providing vault
32 facilities within the United States for the storage of bullion that:
33 (A) Is accredited by the London Bullion Market Association
34 for storage of bullion;
35 (B) Complies with the prescribed London Bullion Market
36 Association best practice guidelines for the storage of bullion; and
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As Engrossed: H4/2/25 HB1918
1 (C) Has a contractual relationship to provide vault
2 services to hold and receive deposits of specie or legal tender for an
3 authorized precious metals-backed electronic payment system vendor;
4 (3) "Legal tender" means a recognized medium of exchange for the
5 payment of debts and taxes; and
6 (4) "Precious metals-backed electronic payment system" means an
7 electronic payment system that:
8 (A) Uses bullion held in a bullion depository as backing
9 for electronic transactions;
10 (B) Allows for the redemption of bullion by electronic
11 payment system participants;
12 (C) Enables the account holder to make payments to a
13 participating vendor; and
14 (D) Is an entity authorized and approved by the Chief
15 Fiscal Officer of the State to provide an account that holds bullion and
16 allows account holders to buy, sell, save, or spend bullion as a form of
17 currency;
18 (2)(5) "Specie" means:
19 (A) Coin having gold or silver content; or
20 (B) Refined gold or silver bullion Bullion that is:
21 (i) Coined coined, stamped, or imprinted with its
22 weight and purity; and
23 (ii) Valued primarily based on its metal content and
24 not its form;
25 (6) "State or local government" means:
26 (A) A county;
27 (B) A city of the first class, a city of the second class,
28 or an incorporated town; or
29 (C) Any other state entity or political subdivision of the
30 state or an agency, board, or commission of the state entity or political
31 subdivision of the state; and
32 (7)(A) "Transactional gold and silver" means a representation of
33 physical gold, silver, specie, or bullion that:
34 (i) May be transferred through electronic or written
35 instruction through a transaction by the owner of the specie; and
36 (ii) Is fully redeemable as physical gold, silver,
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As Engrossed: H4/2/25 HB1918
1 specie, or bullion.
2 (B) The representation of physical gold, silver, specie,
3 or bullion under subdivision (7)(A) of this section shall reflect the exact
4 units of physical gold, silver, specie, or bullion in its fractional troy
5 ounce measurement or grams.
6 (b) Specie or legal tender shall consist of:
7 (1) Specie coin issued by the United States Government; or
8 (2) Other specie that an Arkansas court rules to be within state
9 authority to make or designate as legal tender.
10 (c) Specie or legal tender shall not be characterized as personal
11 property for taxation or regulatory purposes.
12 (d)(1) The exchange of one (1) type or form of legal tender for
13 another type or form of legal tender shall not give rise to any tax
14 liability.
15 (2) The purchase, sale, or exchange of any type or form of
16 specie shall not give rise to any tax liability.
17 (e) Unless specifically provided by law or by contract, a person shall
18 not compel another person to tender specie or to accept specie as legal
19 tender.
20 (f) The Attorney General's office shall enforce this section without
21 prejudice to a private right of action.
22 (g) If a valid contract expressly designates a type or form of specie
23 as tender, then an Arkansas court asked to adjudicate the breach of such a
24 contract shall require, as a remedy for the breach, the specific performance
25 of tendering the type or form of specie specified in the contract.
26 (h) Specie may be recognized to pay debts Specie or legal tender may
27 be recognized to pay private debts, taxes, and fees levied by the state or
28 local government if the state or local government agrees to payment with
29 physical gold or silver.
30 (i)(1) The Chief Fiscal Officer of the State shall promulgate rules to
31 implement and administer this section.
32 (2) The rules promulgated under subdivision (i)(1) of this
33 section shall include without limitation:
34 (A)(i) The ability of a vendor to elect payment for goods
35 or services from a precious metals-backed electronic payment system
36 participant to be in either bullion or dollars at no additional cost to the
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1 vendor.
2 (ii) The conversion of bullion into the dollar
3 equivalent shall be based on the terms agreed upon by the parties and provide
4 for the acceptance of specie, legal tender, or dollars as payment for any
5 public debt, tax, fee, or obligation owed at the option of the vendor;
6 (B) The security of the transactional gold and silver;
7 (C) That all account costs, conversion fees, or other cost
8 associated with the transactional gold and silver account remain with the
9 precious metals-backed electronic payment system participant, the provider of
10 the precious metals-backed electronic payment system, and the bullion
11 depository, as agreed to between them under a contract;
12 (D) Determining the sufficiency of the specie held by
13 bullion depositories authorized in the state of their physical location;
14 (E) Authorizing and approving precious metals-backed
15 electronic system vendors to do business within this state; and
16 (F) Fraud prevention.
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18 /s/McAlindon
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4 04-02-2025 10:20:58 ANS450Every fact on this page links to its source, starting with the official bill record.